Issues
Congress Must Get to Bottom of Obamacare State Exchange Failures
– Alexander Hendrie, townhall.com
Over the past four years, billions of dollars have been funneled from the federal government to states to construct Obamacare state operated healthcare exchanges. This money has not been well-spent. Several states have failed and others have misused hundreds of millions in taxpayer funds.
When Oregon announced it would become the first state to shutter its taxpayer-funded Obamacare exchange in early 2014, it was undoubtedly due to mismanagement…Perhaps worse, the Governor’s office was so determined to win reelection that it gave campaign consultants with zero IT or healthcare experience total control over Cover Oregon’s fate.
…there aren’t enough facts or answers two years after the ill-fated state-operated exchange launched.
$5.5 Billion Spent with Little Oversight
Taxpayers shelled out $305 million for the Oregon exchange, and $5.5 billion nationwide, yet strong oversight over the Centers for Medicare and Medicaid Services (CMS) from Congress has been lacking for years… While Oregon is the poster child of troubled Obamacare state exchanges, the list of failures is far beyond a single state and includes Hawaii, Vermont, Nevada, Rhode Island, Massachusetts, and Maryland…
We Respond & Your Comments
Mr. Hendrie’s article is one of the best summations of Cover Oregon’s and Obamacare’s failures we’ve read.
Rightly concluding that these failures leave many unanswered questions, Hendrie calls for investigations.
Fine. You can convene 26 commissions, 17 committees, 54 Congressional hearings and a special prosecutor or two. But we’ll save you the time and money. Here’s the answer: government is not capable of running a one-size-fits all health insurance program for Oregon’s 3.97 million people – much less for 319 million Americans.
Government programs inevitably become politicized, whether it’s to ensure someone’s reelection (think Kitzhaber) or reward a favored contributor or industry (think Solyndra). So let’s just face reality and get government out of the health insurance business.
Portland City Council Builds Apartment. And Then?
– Brad Schmidt, The Oregonian/OregonLive
…The city-owned [Headwaters] apartments have everything a needy resident could dream of: …a good grocery store…
But Headwaters wasn’t designed for the needy. Most residents…can afford to live just about anywhere they want…
- Though the city lacks enough housing for its poorest residents, leaders chose to spend $14.7 million in public money to build the 100-unit Headwaters for middle-income “work force” residents.
- City leaders said Headwaters, which opened in January 2007,, would generate profits to be invested in affordable housing. Yet today they can’t point to a single dollar spent elsewhere.
- The Headwaters Apartments are exempt from property taxes. That means Multnomah County taxpayers subsidize rents…to the tune of $100,000 in lost revenue a year…
Headwaters would be risky because it required charging “significantly higher rents than existing vicinity area properties,”…
Units feature Energy Star appliances…and free organic coffee…
…Headwaters’ $1.2 million a year in revenue is barely enough to cover debt and operating expenses…
We Respond & Your Comments
Predictable. Right? The brainiacs who run Portland brought their real estate development skills to the real life market. Their “mission”? Create working class housing that would turn a profit and fuel development of housing for the needy.
The result? Over priced apartments whose only market is renters well off enough to afford most any housing. So few of them chose the city owned digs that now the Portland City Council Einsteins will be lucky to break even.
The lesson? Leave real estate (and most everything else) to the people who make a living off doing it in the private market.
Oh, well. It wasn’t their money they scorched.
Zukerberg’s $100M Lesson
– James Piereson & Naomi Schaefer Riley, Wall Street Journal
“What happened with the $100 million that Newark’s schools got from Facebook’s Mark Zuckerberg?” asks a recent headline. “Not much” is the short answer…
The bulk of the funds supported consultants and the salaries and pensions of teachers and administrators, so the donation only reinforced the bureaucratic and political ills that have long plagued public education in the Garden State…
In 1993, philanthropist Walter Annenberg sought to improve education by awarding $500 million to America’s public schools…
But the $1.1 billion in spending that resulted, thanks to matching grants, accomplished little…The funds wound up in the hands of the unions, administrators and political figures who created the problems in the first place…
We Respond & Your Comments
On October 3 union backed Our Oregon launched its drive for a ballot measure that’ll raise $2.5 billion from taxes on large Oregon corporations.
“I think this kind of investment into Oregon…will bring a dramatic improvement to Oregon’s economy,” said Ben Unger, executive director of Our Oregon.
It’ll improve the economy because the government can create more jobs by sprinkling the money over its political base than leaving it with companies that could use it to create jobs. Right, Ben?
Of course it’s “for the children” – because some of it will be dumped into schools. Ask Mark Zukerburg & Walter Annenberg how that works out.
And it’ll force companies to pay their “fair share.”
Our take: Whenever you find “investment,” “for the children” and “fair share” in one place – you can bet somebody’s dollars will be cycled through government to unions.
We Celebrate 100 issues of Lane Solutions!
Dear Readers – This being issue #100 of Lane Solutions, it’s time to look both back and ahead.
First, we thank you, our readers, who share our concern about the economic health of Lane County and Oregon.
Oregon and Lane County should have booming economies. Why not? We have abundant natural resources, a capable work force and a quality of life many professionals will sacrifice salary dollars to enjoy. There’s no excuse for 16% poverty in Oregon.
But burdensome regulations, high taxes and frivolous litigation form barriers to creating the jobs that eliminate poverty.
We’ll continue to call attention to these barriers and tip our hats to those who, irrespective of party, join us in reducing them.
Again – We thank you and hope you’ll stick around for the next 100 issues!
Sincerely, Your Co-Editors.
Why Oregon lags on per capita income: Editorial…
Few economic statistics are discussed as much in Oregon as per capita income. Oregonians don’t have as much money as Washington residents and lag the national average as well…
Per capita income…is all income… divided by population…
So why is Oregon’s per capita income below the national average, and what can we do about it?…reasons include population growth, lower-than-average wages in key high-paying industries, proximity to lower-tax Washington, a shorter average work week, and demographic factors that contribute to higher unemployment and a lower labor force participation rate. That’s a lot to overcome if Oregon political leaders want to raise per capita income…
Pay for lawyers… and several other professions is below the national average in part because many of the people who hold those jobs are willing to accept less pay because…. They get to live in a place with amenities such as access to both the coast and mountains…
…31 states still have higher per capita income than Oregon’s $41,681. The national median was $46,129 in 2014…
We Respond & Your Comments
Nobody can do much about workers in high paying industries who’ll trade salary dollars for our high quality of life in Oregon.
But here are some factors that government can influence for better or worse:
- Oregon’s non-competitive tax structure compared to Washington;
- A shorter average work week. It’s shorter because there aren’t enough full time jobs. Stop taxing capital gains like earned income and we’d create more 40 hour work weeks. Stop confiscating wealth with a “Death Tax” and more job creators would come here;
- High unemployment and low labor force participation – again a culprit is Oregon taxes. Tear down Oregon’s barriers to job creation and guess what? Jobs will come and Oregonians will go to work. And per capita income will increase.
Earth to Salem: “Are you listening?”
Bugs Bunny, White Squirrels and the Gas Tax
EDITORIAL
Just raise the gas tax
It’s the obvious choice to pay for America’s roads
…National gas prices are averaging around $2.85 a gallon. There has not been a better time in recent years for Congress to take the difficult but necessary step of increasing the federal gas tax to put the nation’s Highway Trust Fund on sound long-term footing.
A growing number of federal lawmakers — mostly Democrats but with a sprinkling of Republicans — have begun calling for an increase in the federal excise tax of 18.4 cents per gallon on gas, which has not been increased since 1993. They include Sen. Bob Corker, R-Tenn., and Rep. Earl Blumenauer, an Oregon Democrat who has proposed nearly doubling the current fuel tax…
…an increase similar to the one proposed by Blumenauer could provide a long-term extension of the trust fund…
Lawmakers should stop avoiding the obvious and raise the federal gas tax.
We Respond & our Comments
For Progressives like Rep. Blumenauer (we used to call them “Liberals”) the answer is usually simple: “Just raise the (fill in the blank) tax.” Any tax. Any time.
But we have a few questions for Rep. Blumenauer and his merry crew of taxers about how Highway Trust Fund money has been spent:
Might we have more money for highways if the Feds hadn’t blown:
- $850 million for 2,772 “scenic beautification” landscaping projects?
- $1.6 million for morning cartoon cruises with Bugs Bunny in Oklahoma?
- $112,000 for a white squirrel sanctuary?
- $84 million for road kill prevention & similar programs?
- $313 million for “behavioral research”?
- $16 million for transportation museums?
- $520 million for sidewalks and bikepaths?
We could save tons of your and our dollars by foregoing projects such as those above. Or we could “Just raise the gas tax.”
Lottery Funds Show State Is Terrible Investor
When Oregon politicians pretend to be experts on venture capital investing, it ends up costing the state millions of dollars in education money.
This is exactly what is going on with the Oregon Growth Board, a project of the Oregon Business Development Department. Tasked with generating a return on investment by financing venture capital funds in Oregon, the Board receives 10% of state lottery profits that are supposed to be apportioned to a state education endowment fund. Unfortunately for students, the Oregon Growth Account boasts a measly 1.5% return on investment over a 15-year period…
Perhaps the Oregon Growth Board would have a more reasonable ROI if they just flew to Vegas and put our education money all on red.
Does That Mean They Stop Investing?
State Treasurer Ted Wheeler has shifted his position on energy investments…
Wheeler…recently announced he would (1) seek to double Oregon’s investments in renewable energy…
“As a fiduciary of Oregon’s $90 billion portfolio, I am responsible for choosing investments that financially benefit our taxpayers, schools, communities and retired public employees…”
No – It Means They Do More of It
Oregon Legislature approves state-run retirement plan
Legislation that would create a state-sponsored retirement savings program is heading to Gov. Kate Brown for final approval.
House Bill 2960 requires businesses that don’t offer a retirement plan to automatically enroll employees in the state program and deduct a portion of their wages for it.
We Respond & Your Comments
So these guys can’t earn much more than some junk bond funds when they have buckets of lottery buck to invest.
They actually do worse on “Green Energy” investments. Think Redco, where they blew $11.8 million in tax credits. Or the Small Scale Energy Program, where they’re smoking about $20 million over 5 years.
But did these Warren Buffett wannabees learn anything? Sure – They learned they could grab 10% of your salary if your employer doesn’t offer a retirement program and “invest it.”
Will they make 1.5% on it? Probably not. Will they use it to bail out some green energy fantasy? Maybe. Will they use it to bail out PERS? Does a bear relieve himself in the woods?
http://www.oregonlive.com/politics/index.ssf/2015/02/oregon_signature_solar_project.html
http://www.oregonlive.com/business/index.ssf/2012/01/oregon_taxpayers_must_bail_out.html
City, alliance offering loans to arts groups that may not be eligible for traditional loans
– Jack Heffernan, The Register-Guard
In tandem with the nonprofit Arts and Business Alliance of Eugene, city of Eugene officials have announced they will offer loans to arts-related organizations, businesses and artists who often cannot get traditional bank loans.
Depending on factors such as project size and the amount of money the program has, loans will range from $5,000 to $50,000 each, city officials said in a statement…
We Respond & Your Comments
We love art. We have art in our homes. But we object to the City Council grabbing money we worked for and “loaning” it to their pet “artists.” Here’s why…
These groups can’t get “traditional”, or bank loans. Why? Because they’re lousy credit risks.
Would our mayor or city councilors loan their own money to strangers who’re lousy credit risks? Stupid question. But they’re itching to loan them our money. Maybe because it’s no big deal to them if they lose it.
Our City Council may fantasize that they’re the Medici clan tossing coin to Leonardo da Vinci so he can paint the next Mona Lisa. They’re not. They’re elected officials who confiscated money we earned to manage our city (think potholes). It’s time they doff their 15th century velvet Italian robes and funny hats and do the jobs we elected them to do.
Don’t let Oregon Democrats Steal your kicker
– The Bulletin, Bend reprinted in the Salem Statesman Journal
State Rep. Mike McLane, R-Powell Butte, was right. He said Democrats would come after the kicker tax rebate if there was one.
And sure enough, Rep. Tobias Read, D-Beaverton, proposes that the $473 million set to be sent back to state taxpayers be diverted. He wants some of the money to go to schools and some to go to state reserves…
Legislators are always looking for more of somebody else’s money. The kicker lets taxpayers and not politicians decide how to spend their money…
FrankenTax unleashed — Hiding tax hikes inside tax credits
– Taxpayer Association of Oregon, printed in Oregon Catalyst
Liberal lawmakers are creating a dangerous and reckless FrankenTax monster. House Bill 2093, the FrankenTax bill, is a massive unconstitutional tax increase designed to cheat the public from their 3/5th voter majority protection. In 1996, voters put in the constitution protections against easy tax increases by requiring a 3/5th majority vote for all tax increases. The FrankenTax scheme aims to hide real-life tax increases inside a tax credit renewal bill and pretend it is not a tax increase. The details of the FrankenTax scheme aims to raise millions of new tax dollars by reducing your home mortgage interest deductions …
We Respond & Your Comments
Progressives are always shouting that their programs are “Settled Law.” So’s the Kicker. But we guess “settled law” just ain’t what it used to be.
The paragraphs above are examples of government trickery in attempts to subvert what actually is settled law. They aren’t the only two.
We use these examples to remind ourselves and our readers of the need to constantly monitor not just what our “leaders” are saying, but what they’re doing. People tend to act in their own self interest, and politicians are no exception.
As Thomas Jefferson said, “The two enemies of the people are criminals and government, so let us tie the second down with the chains of the Constitution so the second will not become the legalized version of the first.”
The Choo-Choo From Hell
End of line for Amtrak subsidies?
– Peter Wong, Portland Tribune
One key legislator says Oregon will continue state-subsidized passenger rail service between Portland and Eugene.
But Sen. Betsy Johnson, D-Scappoose, also wants Amtrak to change the timing of a weekday morning southbound train that carried barely 5,000 riders in 2014.
The Legislature’s budget framework proposes just $5 million in additional state funds, half of the $10.4 million proposed by then-Gov. John Kitzhaber…
But Johnson says lawmakers will come up with enough to continue twice-daily runs in the Willamette Valley…
But Johnson also says Amtrak needs to change the start time for a weekday southbound train that leaves Portland at 6 a.m., much earlier than it did prior to 2014…
Ticket sales pay about two-thirds of Amtrak’s actual costs on the corridor.
According to Amtrak’s website, a one-way standard fare between Portland and Salem is $16… Between Portland and Seattle, the one-way fare can be as low as $34…
Amtrak service southbound from Portland was switched on Jan. 6, 2014, from 9:30 a.m to 6 a.m….
Ridership on that run for 2014 was just 5,529, compared with 45,858 for the evening southbound run…
“Frankly, we have not been particularly happy with the results,” ODOT rail planner Bob Melbo said…
We Respond & Your Comments
Amtrac strikes again…and again! Yes, those wizards who spent $16 to make a hamburger and sold it for $9.50 (guess who paid the other $6.50) are back with more “questionable” business practices. And we have a few questions for them:
- If, over 10 years your business lost $900 million in food and beverage service alone would you still be buying burgers for $16 and selling them for $9.50?
- If you sold tickets at a price that only covered 2/3 of the cost, wouldn’t you raise ticket prices and cut a bucketload of costs?
- If any CEO saw that an average of only 16 passengers per day were riding his multi million south bound choo-choo from Portland would he say “Frankly, we have not been particularly happy with the results”? No – he’d scream ”Stop running this bleepin’ train. Now!” And he wouldn’t wait a year to do it, either.
But this is the government. And the lost money was yours.